Hardware wallet manufacturer Ledger updated its investigation on October 10 (UTC+8), confirming that a device belonging to one affected user contained an unauthorized hardware implant. The company had previously launched an investigation into reports of funds stolen from devices sold by CryptoBilis, an authorized distributor in Southeast Asia. Third-party on-chain estimates put the amount involved at more than $86 million; Ledger has not verified the total and says there are no signs that its security infrastructure, systems, or services were compromised.

CryptoBilis has suspended sales of its hardware wallet inventory until the investigation is complete. Ledger again advises customers who bought a device from this distributor in the past 90 days and have not activated it not to initialize it. Those who have activated theirs may consider moving their assets to a new Ledger signer and generating a new recovery phrase. The company stresses that it will never ask for a 24-word recovery phrase. This is a factual update on the investigation into physical tampering in the supply chain.

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